Clinton's dilemma: Awash in both cash and debt

By Greg Gordon

WASHINGTON — The climactic end of the Democratic presidential race left loser Hillary Clinton in an odd position: Her campaign is both awash in cash and buried in debt.

The decisions she makes in how to handle that predicament could affect her future political prospects. Similarly, Barack Obama might seize an opportunity to make peace with his vanquished rival by helping her pay off some of her $21 million in loans.

Clinton's latest report to the Federal Election Commission showed an April 30 cash balance of nearly $29.7 million, but that was deceiving. FEC spokesman George Smaragdis said the figure included $6 million in primary-season cash and $23.7 million in donations designated for the fall general election campaign. None of the general election donations can be used to retire debts accrued during the primary season.

Clinton's biggest problem, of course, is the $21 million in IOUs, which include $11,425,000 she is known to have lent her campaign through the first week of May and possibly millions of dollars more in yet-to-be-disclosed loans during her last-ditch primary campaign efforts.

With Clinton refusing to concede defeat on Wednesday, there was little talk about financial help from Obama.

- more -